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B-189330(2),B-189619(2) 1 (1977-11-08)

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               FILE: B-189619(2), B-189330(2)     DATFE: Novembsr 8, 1977

               MATTER   OF:      Steuart Petroleum Company;
                                 L. A. Swann Oil Company

              DIGEST:

                    Pratest alleging that agency awarded contract to other
                    than low bidder and to bidder not qualified under Wlsh-
                    Healey Act is dismissed since this Office does not render
                    decisions on prottst issuer which are pending before a
                    court of compncent jurisdiction.

                    S:euart Petroleum Company (Steuart) and L. A. Swann Oil
               Company (Swann) bive protested the award of a contract to Roarda,
               Inc. (Roarda) for the e'pply and delivery of petroleum products
               to various defenEe installations under IFB No. DSA6CC-77-B-0003
               issued by the Defense Fuel Supply Center.

                    The essence of Steuart's and Swann's protests is that Roarda
               is not entitled to the award since its price is nut low because of
               the method of escalation used by Roarda in its bid and Roarda Is
               not qualified as a regular nealer under the Walsh-Healay Act, 41 U.S.C.
               135-45  (1970), since it has no commercial business and does not
               have storage facilities or maintain distribution equipment suffi-
               cent to handle the volume of deliveries required by the contract.

                   On August 11, 1977, Steuart filed suit in the UnIted Statei
               District Court for the District of Columbia, seeking declaratory
               and injunctive relief on the basis that Roarda is not the low
               bidder and not a qualified bidder under the Walsh-Healey Act, supra.
               On September 1, the original complaint filed by Steuart was amended
               to add Swann as an additional party plaintiff. A hearing on the
               motion for preliminary injunction was held on September 6. By
               order dated October 11, 1977, in the case of Steuart Petroleum
               Company v. United States of America, Civil Action No. 77-1398,
               the Court issued a preliminary injunction ordering the agency
               pendenta lite to set aside the award to Roarda: provided, how-
               ever, that the order be stayed for 60 days to give the agency an
               opportunity to resolicit the requirement or procted in any manner
               authorized by law.















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